Bain Capital validates XBRL play

We tend to look at venture capital investments as validation of certain technologies. That sort of interpretation was more common in the heyday of venture capital, which seemed to crest and crash with the dot.com era. Still, it's interesting that Bain Capital has invested $12 million in EDGAR Online, a company that could use a less anachronistic name. It's an anachronism because of the rise of XBRL, which is becoming a reality in the reporting universe.

XBRL is being phased in by the SEC, and it won't be long before all issuers will be required to comply. Some think that will open up whole new regulatory vistas. A whole lot of innovation was expected to ensue, and we're already seeing it in some ways. A lot of companies are opting for vendors when it comes to reporting their finances. EDGAR Online would appear to be one company that really benefits. Indeed, half of the $12 million Bain investment will be deployed over the next 18 months.

We'll likely see analytic services rise up to take advantage of the all the tagged data. The possibilities would seem to be myriad. But there has yet to anyone willing to step up and show what can really be done commercially. It would be a shame if investors didn't truly benefit from this. 

For more:
- here's an AP article
- here's a Boston Business Journal article

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